Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/296901 
Year of Publication: 
2022
Series/Report no.: 
Danmarks Nationalbank Working Papers No. 190
Publisher: 
Danmarks Nationalbank, Copenhagen
Abstract: 
Transitioning to a low-carbon economy implies both risks and opportunities in the Danish housing sector, which accounts for one fourth of Denmark's CO2 emissions. We study the heterogeneous impacts on house prices of rising energy prices and energy renovations by combining micro-level data on sales and housing characteristics with data from the official mandatory energy rating reports. We find that higher energy prices reduce the prices of houses without district heating mainly in rural areas. Most renovations will not increase sales prices enough to cover the costs. Those renovations whose price effect will cover the costs have a lower-than-average impact on CO2 emissions, are cheap, and typically concern houses located in and around towns and mid-sized cities and other areas with a higher population density and well-developed road networks connected to towns and cities. We conclude that while opportunities for profitable energy renovations are concentrated in these areas, transitional risks are instead associated with peripheral rural areas, where both the exposure to rising energy prices and the risk of financing renovations is highest.
Subjects: 
Climate
Housing finance
JEL: 
R30
Q40
Q50
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.